A note on testing for spatial error components

The two tests for spatial error components are the Kelejian-Robinson (KR) test and the LM test developed by Anselin (2001). We develop a new form for the LM test which facilitates comparisons to the KR test, and show why the LM test is superior. We develop a second test in the spirit of KR which overcomes this particular shortcoming, but in fact incurs a second shortcoming which renders it inferior even to the original KR test. We discuss this failure as well.

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Year of publication:	2010
Authors:	Carriazo, Fernando ; Coulson, Edward
Published in:	Regional Science and Urban Economics. - Elsevier, ISSN 0166-0462. - Vol. 40.2010, 5, p. 331-335
Publisher:	Elsevier
Keywords:	Spatial error components LM test Kelejian-Robinson test

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008872431